The retailerEY’s publication in consumer products and retail sector

April-June 2013

ForewordDear reader,

We are happy to present the April–June 2013 edition of The retailer — our quarterly publication in the consumer products and retail sector.

This edition includes a feature article on e-tailing market in the Indian context. Additionally, it features an article on gender inclusiveness focusing on the growing role of women in buying decisions.

Currently, the e-tailing market in India is experiencing a growth phase. However, from the supply perspective, consumer companies need to treat it as a separate business to support its core business, rather than an extension of current channels. The business requires a unique set of capabilities, different from those used in brick and mortar retail.

Globally, women are increasingly gaining prominence in making purchase decisions and therefore, consumer companies are increasing their focus on engaging with this group. The article aims to highlight the increasing power of women in taking important decisions, especially as a consumer and buyer.

In our interview feature, Mr Chandru Kalro, Chief Operating Office, TTK Prestige shares his views on the on the Indian kitchen appliances and cookware market, largely covering the evolution of the category.

The final section of the newsletter features the “Retail innovation board”, where we attempt to present snapshots of recent innovations, which have emerged in the Indian and global retail industry.

We hope you enjoy reading this issue of The retailer and look forward to your valuable comments and feedback.

Pinakiranjan Mishra

Partner and National Leader, Retail and Consumer Products EY, India

Contents

Involve yourself:

We look forward to hearing your feedback and suggestions.To contribute to editorial content, please contact Ashish KakwaniT: +91 22 6192 0423 E: ashish.kakwani@in.ey.com

E-tail - the new retail 04

Gender Inclusiveness: women’s growing role in the buying decision 10

In conversation with Mr. Chandru Kalro, Chief Operating Officer, TTK Prestige 14

Special feature: Retail innovation board 16

4 | The retailer

E-tail - the new retail1

The growth of online retail market in China was facilitated by population demographics, growth in internet penetration, growth in the marketplace model (small and micro enterprises selling online) and growth of support services such as logistics, payment mechanisms and banking penetration.

E-tailing is growing globally

According to global trends, internet penetration leads to the growth of online retail. While in the US and China, internet penetration is at 87.2% and 40.1 %, respectively, in India the penetration is still low at around 11.4%. However, the internet penetration in India has grown at a faster rate than the US and China in the last few years. On the back of internet penetration, online retail sales have grown in all these countries.

Online retail as a percentage of total retail sales in the US and China is 5.2% and 6.5%, respectively. However, in India, it is still at 0.2% and is similar to China’s state in 2004. This is expected to increase in the years ahead.

Current state of online retail in India is similar to that of China in 2004-06 period

Source: US Census Bureau National Bureau of Statistics of China, McKinsey Quarterly, ibef

0.0%1.0%2.0%3.0%4.0%5.0%6.0%US

China

India

0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%

0.0%

0.5%

1.0%

1.5%

2.0%

0.9% 1.1% 1.4% 1.8% 2.1% 2.5% 3.0% 3.4% 3.6% 4.0% 4.4% 4.7% 5.2%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

0.1% 0.2% 0.3% 0.4% 0.7% 1.3%2.4% 2.9%

4.0%

6.5%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

0.1% 0.1% 0.1% 0.2%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Online retail as % of total retail

5The retailer |

E-tailing trends in India

Currently, online retail market in India is in a growth phase. The number of unique internet users is expected to grow from the present number of 137 million in 2012 to about 376* million users by 2015. The e-tailing market (excluding travel/ticketing) is also expected to grow from INR4.49 billion to INR21.67 1* billion during the same period. This growth is likely to be driven by the growth in internet access and proliferation of access devices like laptops, tablets, and mobile devices.

The e-tailing companies operate on either of the two models — consignment-based model or inventory-based model. In the consignment-based model, the sellers connect with the buyers directly and the delivery part is handled by the portal operator. Hence, the portal operator has no inventory risk. In India inventory-based model has been more common till date. However, the consignment-based model is gaining traction. Snapdeal, eBay and Naaptol sell on the consignment-based model. Till now, Flipkart has been working on a inventory-based model. Of late, it has entered the consignment-based model with the Flipkart Marketplace.

Logistics/distribution at the right time to the correct address is necessary for customer satisfaction in e-tailing. Some e-tailing companies such as Flipkart and Infibeam developed in-house logistics capability to deliver their products to end consumers. While many traditional logistics players such as Aramex, Blue Dart and DTDC are also catering to e-tailing logistics requirement, a few companies such as Delhivery and Chhotu.in exclusively focus on logistics requirement for e-tailing.

Brick and mortar retailers as well as consumer product companies in India have begun to launch their own online portals. However, most of these companies are still not geared up for the online channel and are yet to develop a sales and marketing approach suited to the requirement of e-tailing channel.

1 Netscribes, Technopak, EY Analysis

Brick and mortar retailers and consumer product companies cannot ignore the online channel in India

Majority of online customers buy products, which are independent of the “touch and feel” aspect (e.g., electronics). Bulk of online purchases today is electronic items followed by personal items such as apparel, jewelry, cosmetics and books as well as home and kitchen appliances. Like in more mature economies, the product categories will start moving toward health, beauty, apparel, food and beverages.

Current state

Personal items (apparel, jewellery, cosmetics, books etc.)

Current state Majority of online customers buy products which are independent of the “touch and feel” aspect (ex: electronics)

As online customers mature, they start buying product categories like health, beauty, apparel, food and beverages

Increasing volumes of internet access devices like smart phones and tablets will lead to growth in the overall online retail market

Source: Netscribes, news articles

India ($0.8 Billion)

US ($226.0 Billion)

76%19%

4%

3%

Electronics

Home & Kicthen Appliances

Others

26%

16%

13%8%

7%

3%

27% Software, Books, Music, Flowers

Electronics

Apparel, Footwear, Jewelery, Linens etc.

Health, Beauty, Food & Beverages

Toys, Video Games, Sporting Goods

Small Appliances, Furniture, Tools etc.

Others

6 | The retailer

The brick and mortar retailers face a number of challenges because of the vast geography of the country and retail outlet expansion is sensitive to economic cycles. Furthermore, varying customer preferences and weather patterns across regions makes merchandising a challenge. Product mix and inventory level planning needs to be different for stores set up in different regions and city tiers besides the added costs of real estate rentals and ground staff. Some of these challenges can be addressed by e-tailing since the SKU that could be put on display is for national consumption and the delivery of the goods could be done from 1 or 2 warehouses.

The online channel allows the brick and mortar retailers and consumer product companies to reach out to tier II and tier III cities. Hence, the brand gets discovered and consumed by many more people than a physical store could cater to.

Furthermore, the brick and mortar shopping malls will evolve from a shopping destination to a lifestyle hub where it would cater to a family’s lifestyle requirements such as family entertainment center, health and fitness center, restaurants and multiplex besides shopping.

Shopping malls evolve into a single hub

catering to multiple lifestyle needs of the

customer

Current state

Future state

Health & fitness center

Restaurant

Multiplex

Family Entertainment

Center

Shopping

Shopping malls will continue to play an important role in showcasing the product to the customers, however increasing sales volumes will come from

the online channel

Shopping malls are pre-dominantly used as a shopping destination by customers

Smaller cities form significant portion of the internet population in India

Tier 2 and 3 cities form ~50% of revenue for e-tailers

Source: Morgan Stanley report, Netscribes

35%

17%11%

11%

26%

Top 8 metros

Towns with 1 Mn+ population

Towns with 0.5 to 1 Mn population

Towns with 0.2 to 0.5 Mn population

Towns with <0.2 Mn population

55% 50%40%

0%20%40%60%

Myntra Jabong IndiatimesReve

nue

shar

e of

tier

2 &

3

citie

s in

201

2

7The retailer |

Companies need to handle online retail as a separate business to support the core business, rather than an extension of current channels. Online retail requires a unique set of capabilities different from those used in brick and mortar retail.

Companies need to handle online as a separate business to support the core business, and not as an extension of current channels

Online retail requires a unique set of capabilities different from those used in brick and mortar retail

• Retailers need to formulate a digital strategy, which answers key questions such as:• Which digital channels to use? (social media,

video streaming sites etc.)• How to use each digital channel for promotions?• How to leverage online data analytics?

• Customer experience in e-tailing requires a different set of skills• Design and layout of the web interface• Technological support (e.g., augmented

reality, 3D view of products, secure payment gateways etc.)

• Efficient handling of inbound/outbound customer calls

• Retailers have been viewing online as an extension channel for their brick and mortar retail• This leads to channel cannibalization.

• Mere online presence will not help, retailers need to view online retail as a separate business.

• Cash on delivery has become a “must-have” for online retailers

• Efficiently tracking and collecting payments in cash becomes imperative in an online retail set-up

• Procurement and warehousing is different in case of online retail. Some of the factors, which require attention are:• Number and location of warehouses• Inventory management • Number of vendors by product category

and their location

• Delivery of the product is of vital importance in the e-tailing context. Key delivery characteristics, which impact customer experience are:• Timeliness of delivery (delivery within

promised time)• Courteousness of delivery person• Handling of returns

Digital marketing

Customer experience

Channel mix

Payment collection

mechanism

Procurement and

warehousing

Last mile connectivity

8 | The retailer

own e-tailing portal for enhanced reach and revenue. Through their online portal, it will be necessary for them to deliver to their target segment the right content, get the visitors to spend more time on the site, deliver the right experience, convert them to buyers and make them come back to the site. This should be supported with an effective and service-oriented procurement, logistics and payment collection mechanism to cater to the customers’ requirements. Online retailing through own portal should be considered as a separate channel that requires focused strategy as distinct from physical channels. The channel, though small today, if nurtured and leveraged effectively will bring a competitive advantage to brick and mortar companies in the long run.

An effective e-tailing strategy answers questions across three main dimensions to define business models for new online channels.

Internet penetration will continue to grow in India, driven by internet-enabled device penetration and the demographics of India. The Indian population is increasingly getting used to buying online. The e-tailing industry in India will evolve as it has evolved in China and the US, with a diversified set of products sold online. The malls are increasingly becoming a lifestyle hub for families rather than just an aggregated retail center. The convenience of buying online from workplace during the weekdays or from home during the weekends would increasingly become a habit. Setting up one’s own online portal provides the brick and mortar retailers and the consumer product companies instant nationwide access that was limited by their physical presence through third-party retailers or their own/franchise stores. The brick and mortar retailers and the consumer product companies should consider setting up their

Customer segments

E-commerce strategy

Business channelsProducts/solutions

• Who are the target customer segments in the online channels?

• whatare the leading online marketing techniques to attract each such target segment?

• How should the product mix be refined to suit the changing preferences of the target customer segments?

• What should be the product mix for the online store?

• What should be the correct pricing strategy of the products? How much discount should be offered in each product line?

• What is the extent of information that should be provided on the product webpage to mirror the product experience in the brick-and-mortar reail store?

• What are various channels that the web offer and which are the best online channels for the business?

• What should be the business model for each of the selected online business channels?

• How to optimize the selected online channels and avoid conflicts amongst those channels?

• How to avoid cannibalization of the existing brick-and-mortar retail channels?

What to sell

Where to sell

Who to sell to

9The retailer |

Dinesh Mishra Partner

Dinesh Mishra is an Advisory Partner and leads the Customer Practice for EY India. He also leads overall Business Advisory for South India. Dinesh holds an MBA degree

from London Business School specializing in Strategy and Corporate Finance. He has more than 17 years of industry and consulting experience in strategy, corporate development, product and customer management across various geographies such as India, Singapore and the UK. He largely assists clients across sectors in shaping their customer and overall business strategy.

Email: dinesh.mishra@in.ey.com Tel: +91 9740106009

Janak Patwari Senior Manager

Janak Patwari is a Senior Manager in the Customer Practice of EY India. Janak holds an MBA from IIM Calcutta and a BTech from IIT Chennai. He has more than

10 years of consulting experience in India, the UK, the Middle East and North Africa. He primarily assists clients in various sectors in shaping their customer and overall business strategy.

Email: janak.patwari@in.ey.com Tel: +91 96320 89900

Inputs from Avik Sarkar

10 | The retailer

Gender Inclusiveness: women’s growing role in the buying decision

2

Introduction

Gender inclusiveness implies that everybody should be treated fairly and equitably; that there are no underlying biases, which hinder the progress of any individual, based on their gender and that both men and women find that they have all opportunities to them.

We have to realize that global economies are undergoing transformation due to uncertain economic and political situations. A renewed mindset of gender inclusive strategies is capable of fuelling increased economic growth in our country. Women’s economic empowerment could truly be a catalyst to achieving growth in not only consumer markets and the retail space but also in other sectors. Increasing gender inclusiveness in the workforce has resulted in an improved percentage of women with a high disposable income, and increased diversity and innovation.

11The retailer |

Women’s increasing purchasing power

According to International Finance Corporation (IFC) estimates the financial power of women as consumers is projected to reach US$28 trillion by 2014, higher than the US$20 trillion estimated in 2009. Surprisingly, a majority of this is concentrated in the developing world, and even includes poor women consumers whose collective household spending sums up to hundreds of billions of dollars. In many countries, women can have as much, or more, influence over household and family spending than men.

In an article for Forbes magazine, Beth Brooke, the Global Vice Chair, Public Policy at EY states , “Women are an emerging market equal in size to the respective one billion populations of China and India.” According to another study, The Female Economy, by Michael J. Silverstein and Kate Sayre, this opportunity is reiterated as illustrated below:

According to the Nielson survey conducted on women across the world in 2011, in emerging economies, men are still considered as primary decision-makers when it comes to purchasing home electronics and cars, whereas women predominate in the health and beauty, food and grocery departments as well as purchases for children. While we know that traditionally women have been responsible for managing the household, women across the world have started becoming economically empowered with gradually increasing incomes and entry in domains such as business, politics and finance. They are becoming more financially independent, some even taking on the roles of breadwinners for their families. Women now have increased buying power. This, coupled with their traditional role

as managers of households, has made them important decision makers. Purchase decisions involving groceries, jewelry, kitchen appliances, apparel, furniture, consumer durables and FMCG products, fitness and wellness products are now expanding to women in the household.

This could also be attributed to the increase in leadership roles for women in the retail and consumer space by family-owned consumer goods businesses. For example, appointments of Nisa Godrej of the Godrej Group and Schauna and Nadia Chauhan of Parle Agro in decision-making positions.

According to a report commissioned by PE fund Everstone Capital, women will make a significant impact as consumers, making India 12% richer by 2015 and 25% richer by 2025. The report further projects that India’s working age population will grow by a third in the next 30 years. Within that broad set, growth in the number of women entering the working population (38%) will outstrip the number of men (33%).

As women are becoming financially and economically more powerful, their purchasing power is increasing. Especially, urban single earning women already form an important but niche consumer segment, because they “buy for themselves.” They invest in automobiles, apartments, technology and financial services, personal care items, apparel, jewelry, accessories, fitness and wellness products and in eating out. They are also form an important market for the recent online shopping/market boom in India because of the kinds of products they purchase. Urban women in India differ from older generations with her increasing role in decision making as opposed to the multitude of restrictions of the past. Not paying attention to this group will be a lost opportunity for a marketer and those that understand this are poised to win in the market and build a large and loyal consumer base.

The answer however, does not lie in the age old gender stereotypes of adding empty features such as making products in feminine colors to appeal to women. The producers who will benefit from increasing women’s empowerment will be those who conduct in-depth research, listen to needs and recognize increased potential. This also means increasing business potential, by involving more women suppliers, women in procurement and emphasizing on designing products that appeal to women. This also means that more women should be encouraged to be in leadership positions and the board level. “We know she’s buying, are we selling her the experience she wants?” is a question that remains to be answered.

World’s largest opportunity

A growth forecast (in trillion)

Source: Harvard Business Review, the Female Economy by Michael J. Silverstein and Kate Sayre, September 2009

Female income Chaina’s GDP India’s GDP

$13T2009

$18T2014

$6.6T2014$4.4T

2009 $1.8T2014$1.2T

2009

12 | The retailer

For example, an organization in the UK, 30 Percent Club, is a group of chairpersons voluntarily committed to bringing more women onto UK corporate boards, armed with the knowledge that it makes better business sense. Their focus is on helping organizations grow through diversity and accelerate female talent development1.

Another example is supplier diversity program at Walmart, which provides companies owned and operated by minorities, women, veterans and people with disabilities to work on an equal footing with the organization. In 2012, Walmart spent approximately US$11.6 billion with women- and minority-owned businesses. This includes US$8.9 billion in direct spending and US$2.7 billion in second-tier spending. In addition, Walmart has pledged to use its global size and scale to empower women across its supply chain 2.

Swedish fashion retail giant Hennes & Mauritz (H&M) with global presence, offers inexpensive, fun, trendy, fast moving clothes, and with a rapid turnover of stock. Perhaps contributing to H&M’s success is the fact that nearly 80% of the company’s employees, 77% of store managers, 44% of country managers and 11 board members are women 3.

1 “Home,” 30 percent club website, http://www.30percentclub.org.uk/, accessed on 20 May 2013.

2 “Suppliers,” Walmart website, http://corporate.walmart.com/suppliers/supplier-diversity, accessed on 20 May 2013.

3 Michael J. Silverstein and Kate Sayre, “The Female Economy,” Harvard Business Review, September 2009.

Conclusion

According to Elizabeth Vazquez, CEO and Co-Founder of WEConnect International, a corporate-led, non-profit organization that helps build sustainable communities by empowering women business owners to succeed in local and global markets. “Gender inclusive strategies for selling to and buying from women are critical in today’s markets because women make the majority of purchasing decisions for their families. Retail customers have a woman’s face and it is critical for procurement executives to include women in the product and service development process by proactively including women suppliers in sourcing events. Corporations that ignore this connection between who they sell to and who they source from are likely not comprehensively anticipating or meeting all the needs of the market and are therefore not as profitable as they could be.”

Not only are women increasingly influencing buying decision, they are also contributing to economic prosperity and becoming a fast growing consumer market. A focus on engaging women will help tap this enormous potential simply because it makes business sense.

13The retailer |

Parul Soni Executive Director

Parul Soni is an Executive Director in EY’s Advisory services and is the Practice Leader of the Development Advisory Services. He is also the Gender Inclusion

cluster, Co-leader for the Global 360 Account -World Bank. He has more than 17 years of demonstrative experience in providing strategic leadership for large development programs at country and regional levels with national and international organizations. During his tenure, he has worked on a range of social development issues including gender equality, child rights, community development, corporate social responsibility and aid efficiency. Parul has been instrumental in launching the Development Advisory Services practice and overseeing the activities of project teams within the EY Global International Development Network. He has worked extensively on gender, women’s economic empowerment and inclusiveness.

Email: Parul.Soni@in.ey.com Tel: +91 124 612 1178

14 | The retailer

In conversation with Mr. Chandru Kalro, Chief Operating Officer, TTK Prestige

3

How has the Indian kitchen appliances and cookware market evolved in the past 3-5 years?

There have been several changes in the last few years particularly in the kitchen area. The key drivers of change are more and more homes with open kitchens. The pressure cooker is shown to build aspirations and add enjoyment to cooking for working women; therefore, even men are helping out in the kitchen. The last point also means that the kitchen is no longer a “food factory” but a family hang-out. Investments in kitchen are therefore no longer considered to be an indulgence.

Have the consumer’s acceptance and preference for kitchen appliances and cookware changed in this period? What is your greatest learning about the Indian consumer during this period?

Yes, exposure to international cuisines and shows, and also increasing foreign travel has brought the category more in the limelight. A key indicator is the number of aisles in a good supermarket that are dedicated to international food, sauces and flavors.

The consumer therefore, is more open minded and ready to experiment. Aesthetics have started to play a key role in everything. Functionality from a brand is hygiene, but differentiation and innovation finds an instant connect. The consumer is also now more brand conscious than ever.

What is the role of traditional and modern trade for this category? Which products have high demand across each of these channels?

Traditional trade is still conservative in their approach to new concepts. Therefore, mature categories, with products having little differentiation, is where this channel is focused on. Modern trade on the other hand is willing to experiment and bring new concepts to the customer. It works far better toward driving impulse of the customer and thereby increases demand.

01

02

Organized retailers are increasingly introducing private labels in the kitchen appliances and cookware category; do you foresee this as a potential threat for leading brands such as TTK Prestige?

Over the years and across the world, private labels have managed a healthy equilibrium with brands. The undifferentiated segments will always have private labels. Brands will have to innovate and differentiate. This will work in everyone’s benefit in the long run and not pose a threat.

What will be some of the key growth drivers for kitchen appliances and cookware market?

The same factors that were detailed above. However, modern retail will now have to accelerate their focus on marketing and promoting categories, which will be the future. Today, there is far too much focus on price and promotion and therefore curtailing the ability of both brands and retailers towards this.

03

05

04

15The retailer |

How do you expect the market to evolve over the next 3-5 years?

We feel that the market will grow significantly and more than most other durable categories in the coming three to five years. The reason is that there is an increasing adoption of convenience products and time savers. This is no longer an indulgence but a necessity since the number of working women are on the rise. As education and financial independence of women increases, the focus on kitchen will also increase.

06

“It’s important to maintain thought leadership if one

has to maintain leadership in the market”

16 | The retailer

1 2UPS makes missed deliveries a thing of the past

Square’s “stand” to replace traditional cash registers

UPS wants to make missed deliveries a thing of the past. Last October, it launched My Choice, a free service that gives consumers a day’s notice on a package’s impending arrival. For an extra fee of US$5, or US$40 a year, they can control when and where it is delivered. The company lets customers tap directly into its sophisticated logistics system and control where and when packages get delivered. My Choice, alerts customers who have signed up, a day before a package is expected to be delivered. That not only (there are also premium services) helps UPS avoid missed deliveries saving them money, but also helps in driving increased loyalty both to the end user and the retailer shipping the package. My Choice is adding to the e-commerce business of UPS. The UPS business has shifted in correlation to what’s happening in retail, toward e-commerce. More than 30% of UPS packages now ship to consumers.

“For solving its customers’ number-one pet peeve,” Fast company website, http://www.fastcompany.com/most-innovative-companies/2012/ups, accessed on 21 May, 2013.

Square unveiled the company’s new countertop payment-processing stand, called simply the “Stand.”

The Stand uses a minimalist design — and name — that is clearly inspired by the Apple design. The Stand is even slightly reminiscent of an iMac’s stand, although the simple white device includes a place to swipe a credit card and is designed to be attached to a retailer’s sales counter. It can also swivel around so that customers can sign for payments. The Stand also can connect with other retail sales accessories such as printers for receipts and kitchen orders, a bar code scanner, and a cash drawer. Square says the Stand is not aimed at getting business owners to ditch their old-fashioned cash registers, but as another selling point to persuade them to join the Square ecosystem. That includes its register software platform, which can process customer orders, track inventory, and take payments with or without customers’ handing over a physical credit card.

Merchants already signed up include coffee, doughnut and ice cream shops in Houston, Seattle, Los Angeles, Chicago, Phoenix, Denver, Philadelphia, Atlanta, Baltimore, Washington D.C., and Portland, Ore., the company said. Square will also sell the Stand from its website and at Best Buy and other retailers starting 8 July.

“Square launches point-of-sale innovation,” Sfchronicle website, http://www.sfchronicle.com/technology/article/Square-launches-point-of-sale-innovation-4516498.php, accessed on 21 May 2013

Special feature: Retail Innovation board4

3 Shopify releases revolutionary new online store-building platform

Founded in 2006, one of the largest players in the create-your-own-online store space is Shopify, a service that allows anyone to set up an online storefront in a few minutes, quickly adding the products they want to sell, accept payments through PayPal and others, add images and more.

Today Shopify is pulling back the curtain on v2.0 and officially making it available to the public. Based on feedback from the 50,000-plus merchants who have created online stores using Shopify, the company has added more than 60 new features, beginning with a complete redesign of its dashboard and the addition of a live theme editor and more intuitive administrative functions.

Shopify’s redesign includes a host of new features, including the ability of merchants to now offer partial refunds without having to use PayPal, along with improved search functionality across the site and improved administrative functionality (such as meta descriptions, an example of something that users

17The retailer |

4 The future of retail: a deep dive into in-store innovations

Hointer has no over-solicitous sales assistants, no confusing piles of clothes and no endless lines at the tills. Instead, only one of each style of jeans is displayed on the shop floor. Shoppers use a smartphone app to scan items they wish to try on, and choose a size and color. The app sends a message over the internet to a robotic system in the stock room. This locates a pair in the correct size and uses tensioned cables to drop it into a basket in one of the shop’s six large dressing rooms. The whole process takes less than around 30 seconds. If the jeans fit, the customer can simply put them in a bag, swipe their credit card through a reader and walk out of the door without ever interacting with a single other person.

The “Identity Mine” store concept connects store associates and consumers both inside and outside of brick-and-

mortar stores. Designed in partnership with Microsoft, an app on shoppers’ phones allows them to create a shopping list visible to store associates. Before a store visit, customers can browse the inventory while being supported by staff with targeted deals, product suggestions, and the ability to send questions to store associates. Customers check in when they arrive at a physical store, alerting staff members and syncing their user profiles, shopping lists, and purchase history. Staff can then reach out to shoppers via intra-app messages in order to offer help and expertise.

Ankush Samant, “The Future of Retail- A deep dive into instore innovations,” Your story website, http://yourstory.in/2013/03/instore-innovations/, accessed on 21 May 2013.

previously had to pay for). The company has also completely overhauled its order management system, which now offers abandoned checkout management, merchant-side order editing, refunds and improved fraud detection. The other key point is that Shopify has fundamentally re-built the platform from scratch to allow for more flexibility and to allow it to expand across all forms of eCommerce.

“Shopify Releases Revolutionary New Online Store-Building Platform,“ Shopify press release, http://www.shopify.com/press/articles/2013-04-11-shopify-releases-revolutionary-new-online-store-building-platform.html, 21 May 2013;

“After 7 Years & 50K Storefronts Created, Shopify Launches Major Redesign To Simplify Online Store-Building,” Techcrunch website, http://techcrunch.com/2013/04/11/after-7-years-50k-storefronts-launched-shopify-launches-major-redesign-to-simplify-online-store-building/, accessed on 21 May 2013.

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Kochi9th Floor, ABAD NucleusNH-49, Maradu POKochi - 682304Tel: + 91 484 304 4000 Fax: + 91 484 270 5393

Kolkata22 Camac Street3rd floor, Block ‘C’Kolkata - 700 016Tel: + 91 33 6615 3400Fax: + 91 33 2281 7750

Mumbai14th Floor, The Ruby29 Senapati Bapat MargDadar (W), Mumbai - 400028Tel: + 91 022 6192 0000Fax: + 91 022 6192 1000

5th Floor, Block B-2Nirlon Knowledge ParkOff. Western Express HighwayGoregaon (E)Mumbai - 400 063Tel: + 91 22 6192 0000Fax: + 91 22 6192 3000

NCRGolf View Corporate Tower BNear DLF Golf CourseSector 42Gurgaon - 122002Tel: + 91 124 464 4000Fax: + 91 124 464 4050

6th floor, HT House18-20 Kasturba Gandhi Marg New Delhi - 110 001Tel: + 91 11 4363 3000 Fax: + 91 11 4363 3200

4th & 5th Floor, Plot No 2B, Tower 2, Sector 126, NOIDA 201 304 Gautam Budh Nagar, U.P. IndiaTel: + 91 120 671 7000 Fax: + 91 120 671 7171

PuneC-401, 4th floor Panchshil Tech ParkYerwada (Near Don Bosco School)Pune - 411 006Tel: + 91 20 6603 6000Fax: + 91 20 6601 5900

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